The Wolf Of All Streets - Bitcoin Is Pumping In The Face Of A Global Economic Meltdown l What Comes Next?

Episode Date: November 2, 2023

Gary Cardone joins to discuss the meteoric rise of Bitcoin and what is coming next. Dan The Chart Guy shares his charts and trades. ►► JOIN THE FREE WOLF DEN NEWSLETTER, DELIVERED EVERY WEEK DAY! 👉https://thewolfden.substack.com/   ►►OKX SIGN UP FOR AN OKX TRADING ACCOUNT THEN DEPOSIT & TRADE TO UNLOCK MYSTERY BOX REWARDS OF UP TO $60,000!  👉 https://www.okx.com/join/SCOTTMELKER  ►►TRADING ALPHA READY TO TRADE LIKE THE PROS? THE BEST TRADERS IN CRYPTO ARE RELYING ON THESE INDICATORS TO MAKE TRADES. USE CODE ‘2MONTHSOFF’ WHEN VISITING MY LINK.  👉 https://tradingalpha.io/?via=scottmelker  ►►THE DAILY CLOSE BRAND NEW NEWSLETTER! INSTITUTIONAL GRADE INDICATORS AND DATA DELIVERED DIRECTLY TO YOUR INBOX, EVERY DAY AT THE DAILY CLOSE. TRADE LIKE THE BIG BOYS. 👉 https://www.thedailyclose.io/   ►►NORD VPN  GET EXCLUSIVE NORDVPN DEAL - 40% DISCOUNT! IT’S RISK-FREE WITH NORD’S 30-DAY MONEY-BACK GUARANTEE. PROTECT YOUR PRIVACY! 👉 https://nordvpn.com/WolfOfAllStreets   ►►COINROUTES TRADE SPOT & DERIVATIVES ACROSS CEFI AND DEFI USING YOUR OWN ACCOUNTS WITH THIS ADVANCED ALGORITHMIC PLATFORM. SAVE TONS OF MONEY ON TRADING FEES LIKE THE PROS! 👉 http://bit.ly/3ZXeYKd  Follow Scott Melker: Twitter: https://twitter.com/scottmelker   Web: https://www.thewolfofallstreets.io   Spotify: https://spoti.fi/30N5FDe   Apple podcast: https://apple.co/3FASB2c   #Bitcoin #Crypto #Trading The views and opinions expressed here are solely my own and should in no way be interpreted as financial advice. This video was created for entertainment. Every investment and trading move involves risk. You should conduct your own research when making a decision. I am not a financial advisor. Nothing contained in this video constitutes or shall be construed as an offering of financial instruments or as investment advice or recommendations of an investment strategy or whether or not to "Buy," "Sell," or "Hold" an investment.

Bitcoin continues to pump in the face of a potential global economic meltdown. Japan going for more stimulus. We're seeing the global M2 supply rising, even though it's still falling in the United States. Are we seeing the world pivot here in the face of inflation fears and the fears of that global economic meltdown? I'm going to talk about this and more with Gary Cardone today. And of course, got chart guys on the back half. You guys don't want to miss this. Let's go. What is up, everybody? I'm Scott Melker, also known as the Wolf of Wall Street. Before we Let's go. Because I was going on one of my rampage rants. She was like, that's not a good look. I'm like, no, that is a good look. You got to tell the people how it is.

Got to tell them when they're being cheap. Tell them when they're being nuts. So I could probably say, hey, I'm sorry for my aggressive tone on Twitter today. Or I could just say, fuck you, deal with it. So I'm going to go with the latter. I'm going to go with the latter one on that. Sorry, we're a little bit late today working through some technical details. Just to give you a quick update, because I told you yesterday, Misha, my producer, apparently arrived at the U.S. border from Mexico,

and they decided they were going to deport him to Estonia. I have not heard from him now in a day and a half. So I'm YOLO, flying by the seat of my pants, figuring it out by myself. Not that fun, but hoping he's okay. I literally haven't heard from him. Pretty worried about that. But I'm sure that he's just in the midst of all the nonsense that goes with dealing with the United States government at this moment. I know that everybody's very concerned about border security in the United States. Well, apparently they're very serious about not letting Estonians into the country.

So pretty messed up. I'm not sure if Gary's stuff is working, but we're going to try, man. I got a thumbs up. Gary, how's it going over there? Hey, buddy. I hope you can hear me. You sound great. You sound great now. You sound great. And I like I like the side angle. It's very becoming perfect.

So listen, people are going to be like, why? Why is Gary Cardone here? Right. Like, why? Why? We want to talk about this. And I want to show them real quick on the screen, your credentials. All right.

Here it is. This is a Bitcoin chart. And I just cut a text. Gary said to me right here. This is on, it's on October 18th. Gary texted me. There are so few sellers. This motherfucker is going to go parabolic at some point. The next day I was at your house, actually. Gary's never used a bad word before. But if you're questioning Gary's credentials, I'm not saying he's a trader predicting price,

but he literally texted that to me right before this went parabolic. What was your feeling at that time? Listen, there was a lot of people saying, listen, Bitcoin, 28,000. We're going to be here forever. It's going to go down that part of the cycle. You text me, this thing's going up, man. And at some point happened to be within 24 hours. Supply and demand, buddy. Supply and demand. Every business, I've been doing business for 40 years since I was 25. Every business that I've gone into was based on supply and demand. And this is the most interesting supply and demand matrix I've ever seen.

You have to believe this thing's going to go parabolic, dude. Like, I hate to even use that word because it's really not what this market needs. This market needs like, you know, easy peasy, steady Eddie. I think it's not going to do that. I think it's going to be more like, you know, rip, come back, rip again, come back. It's going to be violent because I think some big players are getting ready to come in this space and they're going to move this market in ways we've

never really understood. My concern, the reason I said that about ripping, like I've never seen a marketplace that has a liquidity issue like this. I think this is a really interesting. I think people are going to write about this, like the McKinsey's are going to do case studies on something we've never seen before like this. I mean, it reminds me a little bit about the Hunt silver market back in in the uh i guess that was the 80s uh this may turn out a little differently than the silver play did so just no supply man i mean how much floats on the market right now maybe a million i between supply uh reductions on exchanges although people can trade otc lost coins having and the fact that we know that over 70% of coins

haven't moved in, I think over two years. I don't want to, that's not an exact number, but it's roughly that. Yeah. There's nothing here. There's nothing to buy. I, you know, every time I've seen a market where there's nothing to buy, tends to go up. So simple supply and demand, as you said, but it's interesting because I think we've crafted these endless narratives, the four-year cycle, Bitcoin spot ETF, all of those things. You're really taking it down to the basics here, but do you think, listen, so we do need the increase in demand, even with the reduction in supply, right? So even if there's no supply, if nobody's buying, it's not going to go up. Clearly there's demand here. So do you have a thought on where that demand is coming from?

Is it this narrative about the Bitcoin spot ETF? Do you think BlackRock is starting to seed their product? What do you think is going on here? Well, I think they've told us they're beginning to seed. I suspect they're doing that in the OTC market, probably through contracts. I wonder if, you know, there's been discussion about the ETF actually selling seats to the ETF. I wonder if that's not going to come in exchange with Bitcoin. That could be one of the ways, you know, they sell a seat to Anthony Scaramucci. Scaramucci puts in 10 million dollars worth of bitcoin that's totally a hypothesis okay i don't i mean i know anthony but i don't have any

inside intel but that would be one of the ways that you could load up the etf seed it so to speak without really affecting the the liquidity in the market, right? That's on the market. I just, I think when people come to buy $5 million, what did a sailor bought another, what? 5 million? Something like that. Yeah. I mean, this is just going to continue, right?

So when people want to pick up six, $10 million worth of crypto, and that's what these new players are going to do they're not going to be buying half a coin right they're going to be buying they're going to want to buy 50 coins at a time 100 coins at a time and start putting this in their pnl uh question is going to be do they do it before the end of the year or do they do it when their commissions next year get all reset? Right. When do the traders want to start putting positions on?

They're probably going to unwind all their shitty positions this year, take their losses in December and then reload up in January. So sometime between December and January, I got to believe we're going to see a move, man, a bigger move. Yeah. You talked about this. MicroStrategy buys more Bitcoin as Q3 loss widens with the latest addition of Bitcoin to its balance sheet. MicroStrategy now holds approximately 0.75% of Bitcoin circulating supply. That doesn't count lost coins, by the way. So they're becoming one of the largest holders, of course. And they added 6,067 Bitcoin for 167 million. Total holdings, 158,400. Cost base is 29,586 per coin. He is way in profit now. Way in profit. What's his average cost base? Did you say?

29,586. I mean, we're sitting at almost 36. We tapped 36,000 today. So we're talking about now up like 20%. Not a casual small number on that. I mean, we had narratives about now up like 20%, not, not a casual small number on that. I mean, we had narratives when it was at 20,000, he gets liquidated. Micro strategy goes out of business. Micro sailor is going to be homeless. He's going to have to sell his 15 yachts. People are dumb as shit. They don't understand how any of this works, obviously, but he's got to be just laughing. And it really shows you the power of having that low time preference, long time horizon saying, listen, I'm doing this for 10, 20, 30 years, 50 years, never selling. I don't give a shit if my P&L shows down or up this day or this week.

Right? Yeah. Look, his board is all in now. There is no going back for this guy. He's weathered the worst part of the storm i mean my cost base is less than his and i actually started i started after him because i unloaded a bunch of bitcoin to buy node 40 which was an awesome tax uh tax strategy for me but uh i don't see him turning around i actually actually see other carps. Once he got through

the FASB rules, dude, you're not pushing this guy this straight. Ain't no chance. No chance. He'll be the bellwether for the future, in my opinion, how carpets treat Bitcoin. And I think it's going to come from the employees, all the employees. I just ran a survey. Seventy five percent of the people that responded, if you ask the survey correctly. Would find it a benefit if their employer facilitated very easy way for them to take part of their savings program and do a forced savings into Bitcoin. Seventy five percent of the people the people said that would be a benefit. As soon as the employers realize, hey, there are soft benefits they can offer employees that are valuable, they're going to do that.

And once the finance team sees what Bitcoin's doing, because they're looking at it every day, I think you're going to see people start to look at CFOs, hey, let's take 3% and put it on our balance sheet or 1% because I think MicroStrategy and some others are going to really outperform others through this run. Right. People may not know that the reason we didn't see more companies following MicroStrategy, Tesla, Square was because of GA accounting rules, right? You had to basically mark a loss at the lowest point Bitcoin traded during a quarter, which screwed up your entire earnings report, having nothing to do with Bitcoin. Those laws are actually changing

now. And one of the few things that we've seen the government do right. So now there's really no downside. You get to market to whatever the actual price is. You can get a gain rather than a loss, or you can be trading even, but there's no risk that you're going to constantly be taking a hit on your balance sheet and your earnings report every time you do this. And we still have some other unfavorable tax situations. You talked about employees taking Bitcoin. People might remember that in the last cycle, there were a lot of athletes and celebrities, Odell Beckham Jr., Saquon Barkley. These guys took their salaries in Bitcoin. Those guys got absolutely annihilated. They took it at the top,

paid full taxes on it, didn't sell the Bitcoin, and then the Bitcoin came down in value. So basically, they didn't get paid to be athletes. If you got paid in Bitcoin, Bitcoin was $60,000. You paid immediately 40% taxes on that in dollars and you didn't have to sell. And then Bitcoin goes down to 20. You've literally given up your salary and more by taking it in Bitcoin. That has to change for people to do this. Correct. Correct.

For sure. I don't think they're going to take it. This probably belongs in part of the savings program, right? I think one of the things I like about Bitcoin for younger people is that it is a forced savings program, right? And I think that's a real benefit. People need to go back. bonus for performance one year, I would only use 10% of my bonus, Scott, for nefarious things. I'd go buy myself a gift and then I'd take 90% of that bonus, put it in a savings plan. I see that being repeated in the future into Bitcoin. It just requires some discipline.

And I like that, hey, I'm not going to go access my Bitcoin to sell it to buy a car, right? Why would I do that? Yeah, but do we live in a world where people have discipline anymore? That's the question. I think they're getting ready to. See, when discipline all falls apart, like, you know, we were talking about what's the purpose of this call today? Like this world is falling apart at every level of the world. The Fed's trying to go direct. They're going to try and break up commercial banks. Commercial banks are going to go to war with the Fed. You got the largest merchants in the world trying to go direct because they're not being served well.

Right. There's so many intermediaries. We're at war on what? Three continents. We have seven companies that hold up the entire stock market on this future AI world, which I think is going to be a lot longer than we think. And we have Bitcoin sitting out here. We have an education system that's completely destroyed. The mainstream media is getting disrupted by the moment through all these new uh distributed platforms centralized platforms using decentralized guys like you and me right millions of us so we are in a paradigm shift i think that's uh that that we should actually be grateful that bitcoin's here to bridge into the future because I think it's actually a bridge.

And at $35,000, I mean, we're going to test $35,000 today and see if it holds. I am grateful that I've been given a year to be able to buy in the 20s, 27s, 30s, 35s. I think this is a gift that people will turn around and really, it's going to be a FOMO, but it's going to be fucked up, missed out. Yeah, FOMO, FOMO. Yeah, and listen, I mean, when you take a look, you kind of talked about the world

going to hell in a handbasket. You and I have talked about this before, obviously, on Spaces. Like, I like to take a more optimistic view and say that now is a better time to live than ever before. But within those micro cosmos of time, right on a very long timeline, I mean, I think it's very clear that we'd rather live now than in the 1860s, or the 1400s, or the 2000 BC, right? Because of the advancements in science, and generally, things moving in the right direction. But you have these periods of 1020

years where things can get bad. And I think the pendulum swings very in the right direction. But you have these periods of 10, 20 years where things can get bad. And I think the pendulum swings very hard in one direction. You talked about how fucked up it is right now. Listen, we talk about liquidity right now. Bitcoin's going up. So is global liquidity now, actually. I was surprised to see this because US liquidity, obviously M2 money supply in the United States

has been dropping, but we're seeing things like this. Japan's Kishida unveiled stimulus packages support sags. This guy literally is so audacious and thinks that his citizens are so stupid that they're going to do $113 billion in stimulus, and he's calling for it as an answer to inflation. He wants to cure inflation by $113 million stimulus. That might ring familiar for people here. When we had the Inflation Reduction Act and US business investment in the United States, and you read literally the first line from the treasury of what the Inflation Reduction Act is, and it's the largest climate investment in US history. It's literally trillions in spending on climate change that they just

threw the name In reduction act on. Right. So it's like they're robbing people in plain sight now. They're not even trying to hide it. That's my point. Right. They're just testing you to see if you're actually this stupid. Yeah. Well, I think the government's pretty much assume that the people are not going to protest, which I find amazing because I think there's a lot of protests going on. There's protests going on YouTube, protests going on Twitter, protests going on in London, in the streets. There's a lot of voice, a lot of upset. And so this only gets resolved if it gets resolved and the governments offer real solutions to the world. And I don't see any of these politicians doing that.

On either side. Oh, I saw one of your posts earlier. I don't even think it matters anymore. These people are all the same. They fall in a bucket called professional politicians. I've given them 50 years. They have not

done their job. We need a new order. Maybe we need a new world order. Maybe Bitcoin offers... Have you seen the Justin Timberland thing from Fidelity today? No.

Let's see if I can find it. I mean, Fidelity is really pushing that Bitcoin is a gold. We should be looking at Bitcoin as digital gold. This is hilarious. I went to look it up, and I got Justin Timberlake signs infidelity clause granting Jessica Biel everything if he cheats. So that's clearly not the story that we were looking for. But on that end, though, what a wuss. Anyways, yeah.

Not the story. We'll find it there. That's really funny. So, yeah, if you can find that, send it over to me. But, yeah, I mean, listen, there are some of these institutions, and I know that you're a big fan of actually the institutional adoption, cleaning up this space, making it more reputable. You've got to be cheering personally the efforts by the Fidelities and the Black Rocks and everyone in this space, right?

Yeah. Look, I think that in order, if you want adoption. All these guys got to come to the table. They have to come in. We can't say we want adoption, but BlackRock can't play. We don't like BlackRock. BlackRock got a bad reputation. Guys, we have to grow up here. OK. In order for this world to use Bitcoin, it's going to go through the largest banks in the world they are going to get a piece of this like that's how distribution occurs so all we have to worry about

is is bitcoin is great as we said it was if it is we shouldn't be concerned right yeah we should not be concerned what we should be is everyone should get a piece of this action. Really? I don't Yeah, we shouldn't be concerned. But we should be pushing the hell out of this to get other people into it. Because you know that like anything else, that's a life raft. If that ends up being the case 99.9% of people are going to miss it. But but you know, Scott, that's true of everything. People, you can't blame technology for not having, giving people access to information. If people have become so robotic in their, you know, study of what's really going on, they deserve to fall behind this is the way markets work um i don't like there's no how do you fix that right so people learn through i've learned so many you you talk about all the mistakes you've made i've learned through my mistakes so if you didn't give me the mistake i probably wouldn't have learned it so

it's just dude this is evolution is evolution, right? You're either going to be smart enough to understand this. I mean, my brother's not big into this space, even though I am. And some of the noise bothers him. Some of the mixed messaging this industry gives people. Bitcoin is the safest asset in the world. People lost 4 million coins. Hey, man, which is it? Right? Yeah. Well, yeah. Most of those coins were lost when we didn't have any sort of sophisticated solutions to store them. You think about how many were lost in 2010, 2011 on crappy old computers with out real wallets written down on paper. Yeah. But it's a fair, listen, it's a fair criticism. And listen, that's a great segue to the next thing I want to talk to you

about before we let you go. You probably saw this. SafeMoon executive team charged with multiple fraud counts, arrests made. So for your average person who thinks SafeMoon is Bitcoin or thinks it's all the same because they don't understand that there's nuance and these are completely different, they see things like stool president or Dave Poitner or whatever two years ago on TV saying he's the president of SafeMoon pumping the hell out of this thing. Listen, he was doing it jokingly. I'm not begrudging him that, but I'm saying these guys are literal frauds. They're now in jail. I think we both agree that cleaning up the space is really important, but it's also optically just really a hard challenge to tell someone, hey, put your savings in Bitcoin, but it's also optically just really a hard challenge to tell

someone, hey, put your savings in Bitcoin, but also these scams are ripping and we've got Pepe and Doge and meme coins left and right. Yeah. Yeah. I think, and I think the industry, this is my point about self-regulation. We know who the bad actors are. Stop supporting them. Okay. It's like me coming into your house and I don't even have the decency to go to your bathroom. I'm just going to go behind the couch. Like if I, right? I did that in your house, Gary. I'm sorry. Don't bring that up, man. We cleaned it up very quickly. We're used to people like you coming over here and messing shit up. I didn't do that. I didn't do that. But he did leave some Bitcoin, so it was fine. But I think if we police the system a little bit better and not without becoming tribal, okay?

This is a hundred trillion dollar industry. It's going to employ millions of people. The thing I think people don't ever talk about, it's going to employ millions of people that don't need an education to come into this industry. You can actually get mentored, educated by the people that are building companies. That will be the best employees in this space. People that are coming with a blank sheet, no legacy. So, if you want an industry that can hire millions of people, I think that's probably good for the US economy and the world economy. Real jobs, real industries, creating really efficient platforms that aren't carrying all the legacy baggage that makes them charge huge prices.

That's the problem, right? We're having to pay accelerated margins because of the overhead and the legacy baggage that's being carried into this new world. The new world is going to be asset light, very software heavy, right? Asset light, software heavy. I like that phrase. I've never used that before. And I think it's going to be around Bitcoin. So it's a hell of a lot easier to move around. That's for certain. I couldn't agree more with all the sentiment, guys. Gary, we got to have you back. I think we could do a couple more hours. I know guys, we have done a full podcast. You could just Google that and see Gary and I have obviously talked quite a bit before. Also, please make sure to follow him at Gary Cardone on X. Before I let you go though, like give me the two minute version of all the things you're

now doing in this space. So I haven't even caught up with you about it. I obviously know about Node, but I see your presence is obviously growing massively. Yeah, can I can I just do we have time for me to read this jury and Timmer thing? Yeah, director, you're in Timmer my favorite. Yeah, we've had this is fidelity. Okay, director of global macro fidelity investments. They've been in this space for 10 years, pouring a tremendous amount of money and intellectual capital in this space. November the 1st, Timmer took the social media platform X to share his perspective on the cryptocurrency's trajectory. Echoing his late 2020 thesis,

Timmer began his disclosure by highlighting Bitcoin's recent momentum. He posed a reflective question to his audience, inviting them to consider the implications of the pattern over the last five years. He says, describe Bitcoin as a commodity currency. Love that term. With aspirations of becoming a recognized store of value, offering protection against monetary debasement. He went on to liken Bitcoin to exponential gold, exponential gold, suggesting that while gold is indeed a form of money, its practical limitations hinder its use as a medium of exchange. Instead, gold's primary role has been a store of value characteristics that lead to comparisons to Bitcoin.

So he they are all in on this. They see where this is going. He furthers the conversation to add the October 25th meeting with Druckenmiller and Paul Tudor Jones. I know both guys that you really admire. And they are both now talking Bitcoin. So I don't know how many green flags we need. I mean, you got those two guys. You got El-Erian this week. You got Larry Bink on TV calling it a flight to quality. You got the SEC could capitulate here on an ETF.

Man, it's go time. I agree with you, man. Gary, thank you so much for your time. Do it again soon. Thank you, buddy. Looking forward to being in this industry. It's going to be a wild ride. Thank you, man. It's about to get serious over here, man. Thank you for everything you do. Speak to you soon. Thank you. Ciao.

All right, man. Glad we worked through the technical issues there at the beginning and my producer list issues. Time to bring on Dan, who doesn't care if we have a producer or not because he knows exactly what he's doing every week and doesn't uh doesn't need to work through our technical issues how are you man everything going good today good yeah I actually had some headphone issues but able to sort it out it's it's something in the air my wife tells me it's Scorpio season but I'm not an astrologer person yeah Yeah, the moons by the Uranus or whatever. So what are you looking

at today? We've had quite a bit of action on Bitcoin, I guess, since we last spoke, right? So what are you looking at? Yeah, for me, it's a simple guide. I always like looking at a chart and finding a timeframe where I can just make a simple statement. And for me, it's the Bitcoin 12-hour chart. And I want to say, okay, since this move started, since we got the momentum going, we have not lost the 12-hour EMA 12 the entire time. So my mindset is if that level's holding, nothing's changing, the bulls have control. If we lose that level, that's my first indication, okay, things are shifting a bit from what they have been the last couple of weeks. And that makes me open to, all right, maybe it's time for some weekly consolidation, but I don't even have to consider weekly consolidation if that level is support.

So that's my guide for the next, however many days that it holds. And we're currently, as we just was just mentioned, we're back testing now the previous resistance level, just over 35,000 was a tough level to get through. We got through it and now we're back testing now the previous resistance level. Just over 35,000 was a tough level to get through. We got through it and now we're back testing it. And so bulls would love for a four hour higher low to form this morning, holding 35,000, set that higher low. But again, it all depends on what timeframe you're looking at. And for me, it's the 12 hour from a swing trade perspective. I don't think there's anything negative on any higher time frame right now, unless you're like a maximalist about overbought conditions on certain time frames

with RSI or something. But usually that just leads to the consolidation that you're talking about. And maybe we're seeing here, I mean, I've had this same four hour chart, right? That 35, exactly aligning with what you're saying. For me, when we were in here, it was a below 33. Maybe we go back to that 31, eight level, but above 35, it's seemingly clear skies. And we've now broken above that. And so unless these retests start to fail, I mean, I 100% am in line with you. I mean, to me right now, it looks good on every timeframe, right? I mean, you go all the way down and it's clearing levels and re-backtesting them, which by the way, Bitcoin doesn't always give you. It tends to go away and not give

you the dip. So enjoy it while it lasts. And just a note on RSI, because a lot of people misuse it, but it's so important for my trading and has been for so many years. You use it in context of the trend. So overbought RSI, when you're in downtrends, monthly, weekly, daily downtrend, you use overbought RSI to short because you're just looking for a lower high, you know, four hour RSI getting overbought in a daily downtrend, you look for the daily lower high to shape up there. But when you're in a bullish momentum, bullish uptrends, you don't look for overbought to short. You can look at RSI and say, oh, it's overbought. I'm not going to buy up here. I don't like the risk reward. That's perfectly fine. But, you know, the useful RSI for

us now is oversold short term. So you know, if we have a coin that's breaking out, and we're looking for a pullback and an hourly higher low, we look for five minute oversold. So again, if you're using RSI, you just have to ensure that it's in the right context of the price level trends. And right now we are in uptrends on yous on monthly, weekly, daily timeframe. And so we use the overbought to look for entries for longer term higher lows. Here's a great example I keep bringing up. This is the weekly chart on Bitcoin, obviously. And I've circled it a few more in the past, but it hit overbought right here in October of 2020 at roughly $11,500 on the way to $65,000 into overbought. In a large timeframe, like a weekly, when you're breaking out and you're hitting overbought,

that's generally the power zone. You don't get there that often in the weekly. So it's rare that you would just tap and not make it. And we're just hitting overbought right now there on the weekly. So to me, it goes back to something you and I literally discussed last week, and I want to get into it. We said, looking for dips to buy on Bitcoin and looking for rips to sell on stock market. Yeah, that's the way it's been. I mean, again, I keep saying how this is the first time in my six years of watching both very closely together that I can remember the sentiment being this disjointed between the two, where it's easy to explain why Bitcoin and crypto rips in a very bullish market environment where everybody's throwing money at anything. But this is the

first time that I can remember where people are throwing money at crypto when they're not willing to do so in many places, most places in the stock market. And the stock market has recovered significantly the last few days. And I'm looking- Shares gap up right now. I'm actually looking at it just opened and QQQ gapped up four or five points. Yields are getting punished. SPY gapped up big time over the 200 daily. Yeah, there's a lot of movement up right now. I'm at a point right now, and again, the stock market is broken up in a sense that we know

the seven names are huge factors. But I'm at a point where the NASDAQ bears have to prove to me that this is not a monthly bull flag. And if you just show me this chart, it doesn't matter what timeframe it is to see this kind of a bull move and to consolidate and hold the EMA 12, there are no red flags on this monthly chart for the NASDAQ for me in any way, shape, or form. Now, other places in the market, there's a lot of weakness. IWM, growth names, they're very weak. SPY is not as strong as the NASDAQ. But again, just from this perspective, you go to Microsoft, Microsoft is trying to shape up a monthly bull flag. So I'm staying agile in terms of my assessment of the market. But again, there's times when you can just have one assessment of the market and it fits crypto, it fits stocks. And we're not in that point right now. You got to

shift your perspective. I'm real bullish crypto, but I'm not bullish growth stocks. And again, that's fairly new in my six years of following. Yeah. I mean, you just talked about IWM. I'm pulling up the chart right now, which is also the... Obviously, guys, it's the Russell 2000. Oh, I've got the wrong screen shared. One second. Russell 2000. So I was talking about this the other day on Market Mavericks with Gareth Soloway. We're saying, listen, this thing is right at support though in this range. If you pull out, it was at the bottom. I'm not saying it's going to hold this range or not, but when we're talking about overbought and oversold, we had a ton of stocks, including some of those big names with bullish divergence forming, hitting oversold RSI, sitting at support. So I was not... Honestly,

I was not believing it necessarily, but we're seeing the bounces off of all of those as we often do. Right. Even my own system. I was like, yeah, I don't know. Yeah. For IWM, that was the last line of defense. And if, and that level can still break, you know, a week or two down the line, but if that level breaks, that's a long term, this is a three month timeframe. So So I mean, that's a really long term downtrend confirming if that level breaks. So the bulls are playing some defense. And you can see here the previous resistance now trying to act as support. But that is a very important level here in the short term. And pretty much you got the NASDAQ on the stronger side, and you got the IWM

on the weaker side and everything else is somewhere in between that spectrum. Yeah. I don't remember a time in past markets trading where it was such a small number of names that were really pulling an Atlas and carrying the entire thing on their back. It's pretty crazy. And we literally just saw when those even flinched a bit with earnings last week, it had a very, very large impact on everything. Yeah, the paradigms keep shifting. And old school, your flight to safety would be XLU and these defensive sectors. And yet we're seeing big tech, these seven names act as defensive almost. That's where people are putting their

money in and potentially for the AI possibilities going forward, forward future looking things here. But things are shifting a lot. I mean, I keep saying it, the last three years, the fundamental narratives and so many things are being turned upside down in terms of, wait a second, gold wasn't a great play for extremely high inflation. And it might be turning around now. I'm definitely watching the metals very closely into 2024. But again, it's just the world is changing and things are shifting. And my favorite phrase is, this isn't your grandpappy's market anymore. And we have to stay agile to adapt as things shift. There's also something rare that's happening right now, which is we have one of those

moments that doesn't happen very often where it seems like a consensus trade was right. And that's TLT. I'm one of the people who joined the herd on TLT and jumped massively into it because I saw this way oversold conditions. There was this sort of irrational yield at 5%. They're going to 8% talk happening. I just looked at this, thought massively oversold with bullish divergence on our RSI. I've been long TLT since way down here around 83, but then you even pull up the weekly and you have bullish divergence right here, a higher low in RSI with lower lows on price in oversold weekly RSI. So this is one of those things where actually I think the crowd was right saying, hey, man, this is getting irrational. We saw a ton of money pouring into TLT. Yeah, actually, yesterday was my first buy

of TLT this year. And it was I got my trigger as far as I want the bulls to prove something. So you had some confidence to go in during weakness. I needed to see some proof. And yesterday I got it. So certainly a nice day today. But there's still a ton of work to do here as well. Weekly bounce is underway. My game plan is to take a little bit of profit into weekly EMA 12, try and get risk-free where I can just stick my stop under the low and I either hold it long-term or stop out and don't lose a dollar. And that's generally how I approach longer-term mindset swing trades. Anything else you're specifically looking at today? I mean, uranium is still strong. CTJ is the major player there. And it had earnings with a bullish reaction. And so here and now today, we are testing 17-year highs. So anything that

is on the verge of 17-year highs or blue sky breakout, that's where the opportunity is for price discovery, where things get going. And uranium is definitely up there. Uranium and gold. I mean, try and find sectors that are closer to either all-time highs or multiple decade highs. There's not a lot of things out there. And those two names definitely keep standing out. Yeah. It's crazy to me. I literally remember probably 17 years ago getting caught up in uranium mania alongside all of my friends. It's taken this long to get back to the highs. We all lost a ton of money. When all the uranium hype kicked in, it must have been 2006-ish. I haven't even looked at the chart, but I'm looking at it now with yours. I was completely FOMOed in at the top of uranium in the last cycle.

I mean, how much more proof do you need that this is all human emotions and that it repeats itself? I mean, this is a crypto chart. This is what crypto does. And there's so many places you can find that in markets where you get the euphoria and then things get way ahead of themselves. And then you get the major retracements, but there's still opportunity there. And then the recovery and uranium is just going through that cycle, but on a longer... The thing that was so unique about crypto is how fast these things have been playing out, where this happens in many other places, but it takes a decade or two, whereas crypto does it in a couple of years. A couple of days with some of these things, it seems. Yeah, absolutely nuts. I mean, have you been looking at the altcoin market at all,

or is it just not really what you're looking at? I was stunned that Sushi had its classic blow-off top yesterday. And again, this was the kind of move that you see in a raging bull market. And I was stunned that after this five minute climax candle from yesterday, that we still held, you know, normally on a climax top like that, where you shoot up, you know, 20% in 10 minutes or whatever it is, you then give a tongue back and start confirming downtrends. Whereas sushi, you know, held on initially and found a price acceptance still 45% up on the day. And now that's rolling over a little bit more significantly, but it's just a testament to the confidence that has been building in the crypto space the last couple of weeks.

And again, it's time to be a bit cautious just in the sense that you have to determine now on your altcoin holdings, are you going to sit through weekly consolidation or not? And if the answer is no, then you want to be walking stops up and you want to be protective because again, the market has shifted right now where a lot of people are on one side of the boat. There's a ton of longs. There's not a ton of shorts right now. And so we just have to ensure that we have our game plans and remind ourselves, oh yeah,

the music does stop. We do pull back 20% on daily consolidation. So we need to establish a game plan, whether we're locking in all our profits or trying to let some position ride longer term. Yeah. Now I'm going to look at one of them. I think we're just getting into that narrative zone where you get like everything DeFi or everything NFT or anything metaverse. Right now you have Solana leading in the L1 space. So you had this massive Solana move into their conference breakpoint. Now, I think Near went up like 40% or 50% yesterday or whatever. And they have NearCon, which is coming this week.

Another L1 going into their conference where we see these things pop. It's like now I'm just going to go start looking up what layer ones are coming into conference season and choose them. Right? So, I mean, I like right now, I like HBAR. I wrote about it in my newsletter today, just because it's another layer one that's coming into a resistance. It seems like it hasn't gone yet. It's not overbought and might fly. I mean, it's really becoming that easy again, which I find just crazy. You can see it kind of here. It hasn't popped yet. Well, it actually did pop, but I'm looking for something like that, a move like that. You can see this is one of the few that's not overbought,

hasn't really run that big. I think we're getting to that point where you can start to look for things in a bucket and just see what hasn't moved and rotate. Yeah. I mean, I think I honestly, we've been in that standpoint for the last week or two. I think it's time to start being cautious. And Bitcoin did just flush through that 35,000 attempt here. And so again, it's just, again, you look at the weekly chart, just remind yourself, weekly consolidation will be inevitable. And just, again, establishing the game plans for that. And for me, it's the 12 hour. I will be back mostly to cash when Bitcoin loses the 12 hour EMA 12 and anticipating that some weekly consolidation

will come from there. So again, we just know it's euphoria. We're not in blue sky breakout. So we just have to ensure that we're not getting too caught up in the euphoria and just, again, walk those stops up and just have that game plan. We know weekly consolidation is going to happen, whether it happens this week or in two weeks, we can't say. Every day, we're going to get more information to help us determine probabilities. But again, we just don't want to get all in FOMO mode now. We want to stay level-headed as always. I agree, man. Well, thank you as always for your perspective, guys. Follow Chart Guys on X. Check out his YouTube, the same things I tell you every week. Dan, thank you, man, man so much it's always a pleasure to have you here every week thanks scott

see you next time all right buddy have a good one guys that's all i got for you today i found out this morning that nathaniel whittemore is away gonna figure out what to do tomorrow it will not be the friday five with him maybe i'll find somebody else as a guest to do the friday five with uh also need to find a producer uh to help So glad we're making these shows work. Cause I'm flying by the seat of my pants. I'm a complete boomer when it comes to the tech. I don't know how to make a thumbnail, dude. You kidding me? My thumbnails suck anyways. I don't do this. You know, some of you probably just, uh, took a screenshot of that are going to make a thumbnail of my face. Anyways, if you do that, I hate you and don't watch face. Anyways, if you do that,

I hate you and don't watch tomorrow. I will see you, though, tomorrow one way or another. We're going to make something work. Hopefully, it will be a Friday Five with myself and guest to be named. See you guys tomorrow and see you on Twitter Spaces in about 25 minutes. Peace. Let's go.